The future of young fashion brand Golddigga looked uncertain this week as Drapers went to press, after the brand’s founder, Aaron Thalmann, stepped down from the business earlier this month.
Sources in the market told Drapers the brand had been through a difficult trading period which threatened the future of the company. It is unclear what prompted Thalmann’s departure.
A group made up of Octopus Private Equity, former Golddigga chief executive Daniel Morris and Thalmann led a management buy-in buy-out deal worth £18.5 million in October 2006. At the time, Golddigga had more than 400 wholesale accounts in the UK and a handful of overseas accounts. Its sales were £10m. However, Morris left the business last year.
The brand, which is aimed at the teenage market, embarked on a radical new marketing initiative this year that involved the launch of a page on social networking website Bebo, but its sales are understood to have faltered in recent seasons.
Golddigga’s private equity owners Octopus declined to comment on speculation concerning the future of the business. Golddigga chief executive Denzil Lee also declined to comment.